with a market valuation of 1,108.26 Crore, Hi Tech Pipes Limited is a Small-cap company engaged in metals industry. In the Indian piping sector, Hi-Tech Pipes Limited (HTPL) is a well-known brand name. Hi-Tech Pipes, one of India’s top suppliers and manufacturers of ERW Pipes, is headquartered in New Delhi. The firm manufactures a wide variety of steel tubes and pipes, for a wide variety of industries including infrastructure, telecommunications, defence, power distribution, railways, airports, real estate, automobiles and agriculture. The firm has announced its Q3FY23 results, showing highest ever growth in sales volume and net profit. The company has also announced a share split of 10:1.
The company said in a stock exchange filing that the board of directors at its meeting held today i.e. Saturday, January 28, 2023, has approved “sub-division/split of existing equity share of the company by one equity share of face value each”. Rupee. 10/- (Rupees Ten only) each, Rs. Fully paid-up in Ten (10) Equity Shares of face value of Rs. 1/- (Rupee One only) each fully paid-up, and consequential changes to the Capital Clause (Clause V) of the Memorandum of Association of the Company, subject to the approval of the shareholders and other competent authorities.
Citing the rationale behind the stock split, the Board of Directors of Hi-Tech Pipes informed the stock exchanges to improve the liquidity of the company’s equity shares in the stock market and make it more affordable for small retail investors.
On a consolidated basis, the company reported revenue from operations of Rs 569.29 crore in Q3FY23 as compared to Rs 440.02 crore in Q3FY22, registering a growth of 29%. In Q3FY23, the firm announced its highest-ever net sales volume, up 40% to 91,232 tonnes from 65,088 tonnes in Q3FY22. Hi Tech Pipes posts highest ever net profit in Q3 FY23 as PAT grows 28% to Rs. 13.02 cr to Rs. 10.17 crore in the year-ago quarter, while the company’s EBITDA grew by 14% to Rs 28.58 crore in Q3FY23 as compared to Rs 25.09 crore in Q3FY22.
The company also disclosed that it has commenced commercial production of color coating line at Secunderabad, Uttar Pradesh with an installed capacity of 50,000 MTPA in the quarter ending December 2022.
Commenting on the performance, Mr. Ajay Kumar Bansal, Chairman & Managing Director, Hi-Tech Pipes Ltd. said, “During the quarter the company registered good numbers in terms of revenue, highest ever sales volume and profitability, the main Due to substantially improved capacity utilization, better sales realizations and increased share of value-added products. Commercial production of our new color coating line has started this month, we are pleased that this high-margin value-added product will continue to grow in the medium to long term. This will help strengthen the company’s margins at the blended level.”
“In line with our commitment to the environment and to make ourselves energy self-sufficient, I am happy to announce that the maximum power requirement at our Secunderabad, UP plant will now be met from renewable resources. We as a company are always committed to meet the needs of the society as well as nature. Not only on the environmental front, this development will also help in significantly reducing the cost element in our manufacturing process,” added Mr. Ajay Kumar Bansal.
Shares of Hi-Tech Pipes Limited closed on NSE on Friday Closed at 910.60, down 3.20% from its previous close 940.70.
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